Question

Required information The Foundational 15 [LO4-1, LO4-2, L04-3, L04-4, L04-5) [The following information applies to the questions displayed below.] Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): June'l balance Materiale Direct labor Overhead June 30 balance Work in Process Mixing Department 40,000 Completed and transferred to Finished Goods 125,000 83,500 101.000 The June 1 work in process inventory consisted of 5,400 units with $22.220 in materials cost and $17,780 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,900 units were started into production. The June 30 work in process inventory consisted of 8,800 units that were 100% complete with respect to materials and 50% complete with respect to conversion Foundational 4-5 5. Compute the equivalent units of production for conversion Equivalent units of production

Answer 1

Answers

• Units transferred = 5400 + 37900 – 8800 = 34500 units
• Requirement 5

Equivalent unit for conversion = (34500 units completed) + (8800 ending units x 50% complete)
= 34500 + 4400
= 38,900 units Answer

• [6]

Total cost of material = $ 22220 + $ 125000 = $ 147,220

• [7]
  Total cost of conversion = $ 17780 + $ 83500 + $ 101000 = $ 202,280
• [8]
  Cost per Equivalent of material = Total material cost / Total material equivalent units
  = $ 147220 / (34500 + 8800)
  = 147220 / 43300
  = $ 3.40 Answer